Why do business in Canada?
Canada has plenty of perks which make doing business in the North quite attractive. Did you know that Canada leads the G7 countries in ease of doing business? And, according to the Economic Intelligence Unit, Canada is forecasted to be the #1 place to do business among the G7 countries for another five decades. Not only are business expenses and tax rates low in Canada compared to other countries, but the country also boasts powerful investment stability, business leadership, a highly skilled workforce, strategic location, and total lifestyle advantage.
How to start a business in Canada
Canada welcomes foreign business investment also contains many government resources to assist business owners interested in expanding across the boundary. However, it’s necessary to review and ensure compliance with the Investment Canada Act to have the ability to conduct business in the country. Non-Canadians must file an application for review of the investment to make certain it is beneficial to Canadians. If you’re starting a new business or acquiring a business in Canada with less than $5 million in assets, then a review is usually not necessary however a notification must be submitted with the Investment Canada Agency prior to making the investment.
Incorporating in Canada
Though you are able to register your business as a sole proprietorship, partnership, franchise or combined, most foreign companies decide to run integrated businesses in Canada. Before you proceed with incorporation, you will have to complete a NUANS (title ) report to be able to make certain that your company name won’t infringe on any other registered company name in the authority. As soon as you’ve established the name that you want to incorporate, you will need to take into account whether you would like to conduct your business as a subsidiary or run your business in Canada through a branch operation. Though the two options require incorporation, they are treated differently concerning taxation, capital, and accountability.
Federal vs. Provincial Incorporation
Then you will have to decide if you would like to incorporate federally or provincially. Federal incorporation permits you to conduct business across Canada, while provincial incorporation limits your business to the state (s) of incorporation only. Requirements, fees and restrictions vary federally and between every province.
For foreign companies it’s necessary to note the residency requirements for each jurisdiction. On a federal level, just 25 percent of the board of supervisors should have Canadian residency. Provinces like Alberta, Manitoba, Saskatchewan and Ontario demand at least 51 percent of the board to be Canadian residents, while British Columbia, New Brunswick, Nova Scotia and Quebec have no requirement for residency. These factors may influence with what authority you choose to register.
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Canada has a powerful competitive advantage for business investment. With one of the most dynamic economies in the world, Canada is a nation of highly educated and skilled employees with advanced infrastructure and a pioneer in many development sectors. Canada’s location strategically puts it in the international financial forefront and its inclusion in NAFTA provides access to millions of customers in North America. Canada has fared relatively well in the economic downturn and brings stability to an otherwise tumultuous atmosphere for investors. Finally, Canada is renowned globally for its friendly and clean environment and is thought of as a fantastic place to raise a family, live, invest and work.